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China to boost rare earth mine output by 50% with $74 million investment
🇨🇳 China /Economy & Trade

China to boost rare earth mine output by 50% with $74 million investment

From South China Morning Post · () English

Translated from English, summarized and contextualized by DistantNews.

At a glance

News Named sources New plan
  • China plans to increase its rare earth mine output by 50% through a $74 million investment in the Bayan Obo mine in Inner Mongolia.
  • The expansion primarily targets increased iron ore production, with rare earths being a by-product, and will not alter China's rare earth production policy due to existing quotas.
  • This move highlights the gap between the mine's geological potential and its current production levels, particularly for iron ore.

China is set to boost production capacity at the Bayan Obo mine in Inner Mongolia, the world's largest rare earth deposit, with an investment exceeding $74 million. This expansion aims to increase the mine's annual output by 50%, raising it from 10 million to 15 million tonnes.

Bayan Obo is a significant polymetallic site, rich in iron, rare earths, fluorite, niobium, scandium, and thorium. According to Baogang Group, the mine's operator, the project's main goal is to increase iron ore output. Rare earth extraction will remain a by-product of this process.

The expansion underscores the difference between the mine's geological potential and its actual output. While it will enhance mining capacity for iron at this crucial Chinese mine, the country's policy on rare earth production will remain unchanged. "Rare earth production is subject to quotas, so there is no need to mine more ore," explained Li Yang, a leading geologist at Peking University, in an interview.

Rare earth production is subject to quotas, so there is no need to mine more ore

— Li Yanga top geologist at Peking University, commenting on China's rare earth production policy.
DistantNews Editorial

Originally published by South China Morning Post in English. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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